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02-02-2023, 09:30 AM
Grace Leong
Senior Business Correspondent
UPDATED 10 HOURS AGO
SINGAPORE - Steps are being taken to ensure that consumers are protected should their electricity retailers close shop unexpectedly.
The Energy Market Authority (EMA) also wants to make sure that electricity retailers are resilient enough to withstand market volatility. It has proposed tightening licensing conditions to avoid a repeat of 2021, when a surge in wholesale electricity prices drove nearly half of Singapore’s 15 retailers to shutter and affected 9 per cent of all consumer accounts here.
EMA is considering whether retailers should be made to compensate consumers for losses arising from early contract termination.
It is also looking at raising the hedging requirements for retailers and requiring them to have a minimum paid-up capital or tangible net worth of at least $1 million.
At issue is striking a balance between tough requirements to reduce the risk of retailers going bust and the higher cost of these measures, which will likely be passed on to consumers.
Senior Business Correspondent
UPDATED 10 HOURS AGO
SINGAPORE - Steps are being taken to ensure that consumers are protected should their electricity retailers close shop unexpectedly.
The Energy Market Authority (EMA) also wants to make sure that electricity retailers are resilient enough to withstand market volatility. It has proposed tightening licensing conditions to avoid a repeat of 2021, when a surge in wholesale electricity prices drove nearly half of Singapore’s 15 retailers to shutter and affected 9 per cent of all consumer accounts here.
EMA is considering whether retailers should be made to compensate consumers for losses arising from early contract termination.
It is also looking at raising the hedging requirements for retailers and requiring them to have a minimum paid-up capital or tangible net worth of at least $1 million.
At issue is striking a balance between tough requirements to reduce the risk of retailers going bust and the higher cost of these measures, which will likely be passed on to consumers.
